Asia Must Define Clear Decarbonisation Pathways

At the 2024 Unlocking Capital for Sustainability summit in Singapore, Ravi Menon, the country’s Ambassador for Climate Action, urged Asia to decouple economic growth from emissions. Addressing a gathering of key decision-makers, Menon stressed the urgency of this transition in what he described as a “climate-impaired world.”

Menon’s comments focused on the region’s unique challenges, emphasising that Asia should not be forced to choose between economic growth and reducing emissions. “If emissions in Asia are not reduced, the result will be catastrophic climate change globally,” he said. Menon also acknowledged the complexity of the transition. “Asia will need to find its own path towards decarbonisation, one that takes into account its stage of economic and social development.”

The Need for a Defined Transition

Menon called for clear standards to define what constitutes credible sectoral decarbonisation. While investing in clean energy and electric mobility is relatively straightforward, most of Asia’s industries are involved in transition activities that need to progressively reduce their carbon footprint. Menon added, “We need robust and objective definitions of what we mean by transition activities. This is critical to ensure investments are leading to real climate outcomes, not greenwashing.”

The summit, which attracted 200 delegates from across Asia, provided a platform for discussions on accelerating fossil fuel phase-outs, high-integrity carbon credits, and sustainable financing mechanisms.

Geopolitics and Climate Action

A keynote speech by Professor Kishore Mahbubani, Distinguished Fellow at the Asia Research Institute, National University of Singapore, explored the intersection of geopolitics and climate change. Mahbubani noted that while the world is more connected than ever, geopolitical tensions are slowing climate action. “We no longer live in 193 separate boats; we live in 193 cabins on the same boat. But humanity isn’t coming together to tackle climate change. Geopolitics is a more powerful force than common sense when it comes to global decision-making.”

This reality, Mahbubani said, makes the battle against climate change even more difficult, highlighting the importance of collaboration at the international level to achieve tangible results.

Asia’s Progress on Sustainable Development Goals

As the 2030 deadline for the Sustainable Development Goals (SDGs) approaches, Asia is falling behind. No country in the region is currently on track to meet any of the 17 goals, despite some progress in recent years. Experts at the summit agreed that the next five years will be critical to bridging the trillion-dollar funding gap required to regain momentum.

The challenges in transitioning from coal-fired power to clean energy, the importance of boards prioritising sustainability, and the need for innovative climate tech solutions in Southeast Asia were also key topics discussed at the summit.

The Liveability Challenge 2025

The forum also marked the launch of The Liveability Challenge 2025, a global initiative by Temasek Foundation to find and commercialise climate solutions. The eighth edition of the challenge introduces two new themes: Decarbonisation and Cool Earth. The challenge will offer over S$2 million in funding, with two grand prizes of S$1 million each.

Heng Li Lang, Head of Climate and Liveability at Temasek Foundation, spoke at the launch. “The Liveability Challenge is about finding bold, breakthrough innovations to tackle our toughest climate challenges. As we begin its eighth edition, we are excited to see the next wave of innovators rise to this global challenge.”

The new themes aim to attract solutions that address carbon reduction and extreme weather conditions, reflecting the region’s urgent need for innovation in these areas.

Industry Perspectives on Climate Finance

The forum featured input from industry leaders on how to mobilise the capital needed for the green transition. Jessica Cheam, Founder and Managing Director of Eco-Business, pointed out the intersection of geopolitical tensions and climate action. “This year, we are seeing more private sector-driven, bottom-up initiatives aimed at making progress on climate targets,” she said. Cheam noted that the upcoming COP29 climate summit presents an opportunity to explore policy mechanisms and financial levers to advance the region’s climate agenda.

Kevin Franklin, Chief Growth Officer at LRQA, highlighted the importance of verified data in driving sustainable finance. “By focusing on data-driven decision-making, we are contributing to a more resilient and sustainable future,” he said.

Mike Ng, Group Chief Sustainability Officer at OCBC, emphasised the role of risk allocation in project financing. “Political risks can be mitigated through blended finance with multilateral development banks. Risk allocation is essential to getting nascent projects off the ground,” he explained.

Melissa Moi, Head of Sustainable Business at UOB, echoed the importance of public and private partnerships. “Governments, investors, and financial institutions need to work in tandem. Clear country-specific pathways to net zero, enabling grants, and the right environment for scaling finance are all critical,” she said.

Conclusion

The Unlocking Capital for Sustainability summit brought together leaders across sectors to discuss Asia’s path towards decarbonisation. The discussions underscored the need for collaboration between the public and private sectors, innovative financing, and clear standards to ensure a successful transition to a low-carbon future.

As Menon pointed out, the challenge for Asia is not just achieving net-zero emissions but doing so while continuing to grow its economies. The solutions discussed at the summit aim to ensure that Asia can meet its climate goals without sacrificing economic development.

Last Updated on September 16, 2024 by Nick Ross